Creation of charge (when share are pledged)

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This query is : Resolved

Lokesh (Querist)

18 August 2015 If the equity share are pledged than charge is mandatory to create under CA'13.

EXPLANATION:
a Company A Limited purchase the shares of B limited (holding 20%).. After a Year COmpany A requires the fund and it will go to the Company C Limited and raised fund from Company C Limited and pledged the shares of B Limited as security under agreement.

In this Case Charge is mandatory to create or its not required.

Amol S Joglekar

Amol S Joglekar (Expert)

18 August 2015 Charge is necessary to be created of the said PLEDGE.

Amol S Joglekar

Amol S Joglekar (Expert)

18 August 2015 Charge is necessary to be created of the said PLEDGE.

Lokesh

Lokesh (Querist)

18 August 2015 When and how will create a Charge..

as per the example.:
Company B is required to create a charge!!

but some of the experts Opinion that if in the pledged agreement their is not mentioned then it is not required.

and which provision of CA'13 attracts here... coz for pledged nothing is mentioned their.

Lokesh

Lokesh (Querist)

18 August 2015 Thanks Amol S Joglekar Sir... for your quick response..

Thanks aton.!!

Please clarify sir on the topic, coz the same is current and practical problem to resolve from me.

Amol S Joglekar

Amol S Joglekar (Expert)

18 August 2015 If the shares are in physical form:
Company A sends the share certificate to Company B to mark the charge in favour of Company C.

If the shares are in d-mat form
Company A sends the request to create charge in favour of Company C to the DP of Company B

Lokesh

Lokesh (Querist)

19 August 2015 Thanks sir.. Thank you Very much for giving your precious advice on this matter

Amol S Joglekar

Amol S Joglekar (Expert)

19 August 2015 You are most welcome.
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